The Terra Luna Traditional (LUNC) group has voted overwhelmingly, with almost 60% in favor, to stop the minting and reminting of Terra Traditional UST (USTC) tokens. The drastic determination, in a decisive transfer geared toward rescuing the beleaguered Terra Traditional stablecoin, comes within the wake of Terra’s collapse in Might 2022, which had despatched shockwaves via the crypto market, leaving USTC’s worth in shambles.

The proposal to halt USTC minting and reminting is a part of a complete plan to facilitate the re-pegging strategy of the stablecoin. To speed up this course of, members of the Terra Traditional group are actively inspired to take part within the burning of USTC tokens, successfully decreasing the token’s circulating provide.

Earlier than the catastrophic occasions of Might 2022, Terra’s blockchain community allowed customers to seamlessly swap between USTC and LUNA, Terra’s native cryptocurrency. Nevertheless, because the community crumbled and USTC misplaced its peg to the US greenback, the system started minting LUNA cash in a determined try to revive stability. 

This emergency measure led to an oversupply of LUNA tokens and a cascading impact on its value, dragging USTC’s worth far under its meant $1 mark.

The Sure votes have it. Supply: Atom.Scan

Terra Luna Burning Problem

The group’s main goal with this proposal is to expedite the burning of LUNA tokens, in the end driving up their worth. The burning course of, the place tokens are completely faraway from circulation, has been sluggish to this point, with solely 75 billion LUNC tokens efficiently incinerated. This leaves the circulating provide at roughly 5.9 trillion LUNC, out of a complete provide of 6.84 trillion.

As extra LUNA tokens had been minted to revive the USTC peg, the oversupply put immense downward strain on LUNA’s value. Consequently, USTC’s worth suffered a steep decline from its preliminary $1 valuation.

LUNC/USDT buying and selling at $0.000060 on the each day chart: TradingView.com

Accumulation Indicators Amidst Uncertainty

Regardless of the tumultuous journey to this point, there are optimistic indicators that provide a glimmer of hope for the Terra Luna Traditional group. In keeping with CoinGecko, the present value of LUNC stands at $0.00006150, reflecting a 2.9% enhance previously 24 hours and a promising 6.6% surge over the previous seven days.

Key momentum indicators noticed inside a 24-hour window present indicators of approaching overbought ranges. LUNC’s Relative Energy Index (RSI) stands at 53, indicating average energy, whereas its Cash Circulate Index (MFI) is at 76, suggesting strong accumulation. This shift in sentiment signifies that the group’s efforts to revive worth could also be gaining traction.

LUNC value motion within the final seven days. Supply: Coingecko

The Terra Luna Traditional group’s daring determination to halt USTC minting and reminting signifies a concerted effort to revitalize the ailing stablecoin. With a renewed give attention to burning LUNA tokens and correcting the supply-demand imbalance, the group goals to steer USTC again on track in direction of its $1 peg, offering a glimmer of hope amidst a difficult journey of redemption.

(This website’s content material shouldn’t be construed as funding recommendation. Investing entails threat. Once you make investments, your capital is topic to threat).

Featured picture from